What financial advantage is gained by waiting for a large order to create backorders?

The financial advantage gained by waiting for a large order to create backorders is primarily found in the aspect of shared setup costs across items. When production is scheduled for a substantial order, the setup process—such as changing machinery, preparing materials, or programming equipment—can be completed once and then applied to producing multiple items within that larger order. This reduces the overall setup time and costs per unit, maximizing efficiency and minimizing the associated expenses that would occur if each item were produced separately in smaller batches.

In contrast, options like decreased shipping fees or reduced labor costs do not inherently relate to the strategy of creating backorders; instead, they depend on other factors such as shipping volume or workforce management. Similarly, lower production costs can be influenced by numerous variables independent of how orders are handled regarding backorders. In this context, the advantage truly lies in the efficiency and cost-effectiveness gained from consolidating production processes through shared setup, making option B the most compelling choice.